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IGUJoint Meeting of WOC 1 and PGC A

Rio de JaneiroFebruary 18-21, 2013

GGFR

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� Created in 2002 at the World Summit on Sustainable Development in Johannesburg

◦ Just celebrated 10 year anniversary

� Objective:

◦ Reduce carbon emissions and environmental impact of flaring

◦ Monetization of a wasted resource

◦ Improve energy efficiency and access to energy

� Means:◦ Public – Private Partnership to facilitate gas flaring reduction

� Phase 4:

� 2013 – 2015 Scale Up

GGFR Initiative

Mission Statement GGFR is a catalyst for reducing wasteful and undesirable practices of gas flaring and venting through policy change, stakeholder facilitation

and project implementation

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� An estimated 140 billion cm of gas is

being flared globally each year

◦ Approx. 20% of US gas consumption

◦ $30 – 35 Billion per year loss value

� Approx. 360 million tons of carbon dioxide into the atmosphere each year

◦ Annual emission from 77 million cars

◦ Output from 125 medium sized coal power generation plants

� Potential risk of increased gas flaring

◦ Oil production increases (Iraq)

◦ New producing countries

◦ Oil Shale and gas shale production

Gas Flaring –Magnitude of the Issue

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Oil companies

BP

Chevron

ConocoPhillips

Eni

ExxonMobil

Shell

Statoil

TOTAL

Associated

Partner

Wartsila

Organizations

The World Bank

EBRD

EC

GGFR Partners

Countries/(NOCs)Countries/(NOCs)Countries/(NOCs)Countries/(NOCs)Algeria (Sonatrach)Angola (Sonangol)Azerbaijan (SOCAR)Cameroon (SNH)FranceGabonIndonesia IraqKazakhstanKhanty Mansiysk(Russia)Kuwait KOC NorwayMexico /PemexNigeriaQatar (QP)Rep. of CongoUzbekistanYamal Nenets (Russia)USA

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Global estimates based on satellite imaging

Source : NOAA, BP Statistics

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GGFR - Key Achievements - Global

• 20% decrease in global gas flaring the past seven years

• Increased Global awareness and understanding of the gas flaring and venting issues

– 4 Regional conference s

– 4 Global Forums, latest in London 2012

• New Regulations on Gas Flaring in many countries

– “No flaring” laws in Russia, Angola, Kazakhstan, Gabon, Cameroon

– New laws being progressed in Indonesia, Nigeria, Gabon, Qatar, Iraq

� Global Standard for gas flaring reduction• Endorsed by GGFR Partners• No venting • No Flaring in New projects • Eliminate continuous flaring from existing production • Gas Flaring Reduction Plans (AGRP/CIP)

Subject to

economic test

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GGFR - Key Achievements – Projects

• Identification and Development of Gas Utilization Projects

– Angola, Nigeria, Kazakhstan, Qatar, Uzbekistan, Azerbaijan, Gabon, Cameroon

• Development of tools to monitor and measure the flaring

– Satellite images in partnership with NOAA

– Improvement of metering and estimating tools and methodologies (Qatar, Russia, Kazakhstan, Mexico...)

• Improvement of understanding of CDM and Carbon Credit Mechanisms

– Russia (Rosneft Gas Flaring Reduction Project )

– Nigeria (Kwale)

– Uzbekistan

• Improvement of small scale gas utilization technologies

– Review on existing and new technologies

– GTL study

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� The work program launches a more holistic approach along the whole gas value chain

� Deepen GGFR’s work in partner countries - more focus on: ◦ Both upstream and downstream◦ Champion the identification of, and help to advance gas utilization

projects◦ Assist governments in drafting fair, balanced and efficient regulations ◦ Work with governments and companies to develop gas markets and

infrastructure to provide outlets for gas currently being flared ◦ Increased energy access - SEFA

� Global activities and Networks:

� Technical, Communication and Carbon Finance Networks

� Work with the Climate and Clean Air Coalition on methane and black carbon from gas flaring, Microgaz on cook stoves

GGFR Scale up efforts 2013-2015

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EXAMPLES OF COUNTRY PROGRAMS

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Nigeria: Satellite image 2010 flaring

Source: NOAA

Significant volumes of gas are still being flared

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• Support for World Bank “Nigeria Electricity & Gas Improvement Project”

� Provide technical support, using synergies with Bank operations

� Develop database of gas supply plans for power and other gas utilization projects

� Identify and pursue opportunities for GGFR facilitation to increase gas supply and maximize use of associated gas

• Small-scale gas utilization

� Investigate multiple potential projects using multiple gas sources, continuing into detailed design (technical and commercial)

• Nigeria Flare Reduction Committee

� Continue to support the activities of the NFRC

Nigeria

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Iraq

0

500

1000

1500

2000

2500

3000

3500

0

1

2

3

4

5

6

7

8

9

10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Oil

prod

n kb

b/d

bcm

Iraq flared volumes and oil prodn

Flared volume (bcm) Oil prodn (kbbls/d)

• Counterpart: Ministry of Oil

• National Energy Strategy (INES) study being completed

• Gas Pricing Study

• Gas commercialization, regulation and institution study

• Further scope:• Gas Master System• Capacity building• Institution reinforcement

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Russia

• Working with the Government of Khanty-MansiyskAutonomous Okrug (KMAO) and the Government of Yamal-Nenets (YNAO)

• Activities are focused on further reduction of associated petroleum gas flaring and venting, and on economic assessment of flared gas utilization options and technologies

• Within the framework of the signed agreements assist to:

• improve quality of flaring data• strengthen procedures for measurements• identify flaring reduction projects

• GGFR team continues its dialogue with subnational governments of oil and gas producing regions on potential cooperation on flared gas reduction.

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The GGFR Technical Network meets virtually, delivering a number of reports:

• Small-scale Gas-to-Liquids study

• Small-scale power generation using associated gas

In 2013, it is proposed that the Network will address:

• Reporting of flare gas volumes

• Flare efficiency/black carbon emissions

• Flaring definition and flaring/venting standards

• Further options for utilization of small-scale associated gas (including an update on GTL technologies)

Technical Network

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GGFR vision

Thank you for your attentionBsvensson@worldbank.org